Mens tailors MOSB (Moss Bros) issued a trading update today, sending the shares down 28% to 43.5p as of writing. The RNS contained the fateful words:
the Board now anticipates that the Group will deliver profit at a level materially lower than current market expectations.
They cite stocking problems, difficult hire sales, and lower footfall.
The full year dividend will be lowered to 4p, from 5.89p. Stockopedia shows that MOSB has a dividend yield of 9.6%, which is an emphatic sign that the dividend was vulnerable.
Stockopedia gives MOSB a Quality Score of 90, a Value of 94, and a Momentum of 5. I think these scores are based on yesterday’s figures.
I think it’s worth pointing out that, although momentum is a contentious issue among investors, a score of 5 should have been taken as a stern warning that the market was seeing something seriously wrong.
During 2018 this market is doing my head in! Companies large and small are being eviscerated for any misstep. The broader market is not too bad, but individually, there are nightmares. Companies like MCRO (Micro Focus) AA, CPI (Capita), IRV (Interserve), and on and on, all being ripped to shreds.
I am actually wondering if all this is actually the early stages of a bear market, and that we’ll begin to see less “breadth” in the market, shunning the poor performers, and concentrating on the winners.
Dunno. But things aren’t pretty. It’s like treading through a minefield.
Stay safe out there.